Wednesday, May 6, 2020
Journal of Accounting and the Public Policy - MyAssignmenthelp.com
Question: Discuss about the Journal of Accounting and the Public Policy. Answer: Introduction The executive remuneration has considered pay and performance which is linked with the Australian companies with the backdrop of increased political uncertainty which has challenged the performance and vocal shareholders. The executive remuneration design reconsideration are seen with the different companies. For instance, the prevalent approach of the fixed remuneration is seen with moving away from the existing marketing approach based on the fixed remuneration. The different types of the short-term incentive (STI) and long-term incentive (LTI) is considered with fixed remuneration approach. The changing performance measures are identified with the existing structures. Other aspects of the report is based on following reporting considerations such as reviewing of the existing literature on the topic, reviewing of the literature and reviewing of company remuneration policy. The report has also discussed about the different types of the remuneration methods (Cheng, Lin and Wei 2015). Seven West Media is considered to be an important integrated media organisation with the chief presence in terms of the broadcast television, newspaper publishing, magazine and online materials. The company has further seen to be home for some of the most eminent performing media business. This is seen to be identified in form of the Seven, 7TWO and 7mate, 7flix, Pacific Magazines, The West Australian, and Yahoo! 7. Review of Topic and review of Literature The performance evaluation of CEO is based on the several types of the measures has seen to be based on the depictions made as per the Rivero and Nadler. Respondents has been able to note that the differences in the implementation are considered with 45% of the response, considered with the compensation commission captivating the lead of the entire board (Nyombi 2014). The performance evaluation of the CEO is taken into account with the several kinds of factors which is seen to be based on the depiction made as per the difference of good evaluation process and the participation of the individual members. It is further seen to be discerned that the different type the consideration to reporting aspects are considered with the CEOs approach towards the process along with the reactions. It is recognised that board and CEO will be able to make an investment to ensure the process is pre-planned and a part is based on the normal course of the business. The potential problem is seen to be based on the different type the consideration which is seen to be related to the uncertainty concerning the roles and responsibilities, absence of time and energy, disagreement with the criteria for the assessment and lack of direct information on the non-quantitative performance (Velte and Eulerich 2014). In general companies are seen to be developing the strategic plans which are seen to be related to the developing of the strategic plans and implementing the control systems to ensure the operations are proceeding as per the plan. This type of the control system is seen to be considered with various type the specific performance which is seen to be influencing the strategic plan and alert the management when the deviations are seen to be large enough for the endanger plan. The effective measure of the control system is seen to be based on the activities which comply with the regulatory requirement and the legal internal standards. This is seen to be particularly important for small business in which this practice is more informal (Cheng, Lin and Wei 2015). Company review The important objective for the various type to the remuneration policy is based on the evaluation of the several type of the objective which is associated to make sure that the payment packages which correctly reflect the duties and the errands of the employees and the remuneration appropriately stated in the competitive market rate attract, motivate and retain the individuals with chief quality and skills in the industries in which it operates (Ferrarini and Ungureanu 2014). The remuneration and the nomination committee is considered with the depiction of the numerous information based on yearly remuneration practices. The board is further able to establish the Remuneration and the Nomination committee. The primary responsibility of the board in the matter associated to the remuneration is seen with the depiction which are established as per the review and the advice given by the board and the directors which is seen to be based on the various factors directly related to assessment and advise the Board of Directors fees and the payment of the board members. This is seen to include the equity incentive based on the depiction made by the Managing Director Chief Executive Officer, Chief Executives and senior executives of the Group subsidiaries. The committee is further seen to be responsible for the various type of the factors which is associated to provide the appropriate information and provision to serve as a sound board for the managing director and c hief executive officer and particularly board in the HR matters related to the remuneration. Some of the various type of the other aspects of the remuneration are seen to be based on the significant factors in terms of the succession preparation and the employee progress policies (Wells 2015). The practice of the MD is seen with significant nature of the factors which is seen to be related to seek approval from the senior managements remuneration. The compensation of the non-executive directors are restricted as per the aggregate constitution of the company and the requirement of the ASX listing rules (Kuo and Yu 2014). Summary of findings Based on the significant depiction made in the study, it is able to seek the relevant approval from the senior group management remuneration however this has not been presented during the meetings of the committee. The important remuneration for the performance is seen to be discussed as per the approval of the senior group managements remuneration however this is seen with the approval of the senior group management however these incidents has not been presented in meetings of the committee. As per the depictions made in the previous literature it is understood that the performance evaluation of the CEO is considered with the numerous factors which is seen to be based on the depiction made as per the difference of the good evaluation process and the participation of the individual members. It is further seen to be discerned that the consideration to reporting aspect is seen to be taken into account with the CEOs outlook towards the procedure and the reactions and the feedback. In addition to this, based on the literature of the study it is further depicted that the various type the findings associated to the control system is seen with specific performance which is seen to be influencing the strategic plan and alert the management when the deviations are seen to be large enough for the endanger plan. The effective measure of the control system is associated with activities which comply with the regulatory requirement and the legal internal standards. It is also noted that the company is seen to depict the remuneration and the nomination committee as per the depiction of the various information based on the yearly remuneration practices. The board is further able to establish the Remuneration and the Nomination committee. The primary responsibility of the board in the matter associated to the remuneration are related to various types of the depiction which has been seen to be established as per the review and the advice given by the board and the directors which is seen to be based on the factors directly related to review and advise the Board of Directors fees and the remuneration of the board members. This is including the equity incentive based on the depiction made by the Managing Director Chief Executive Officer, Chief Executives and senior executives of the Group subsidiaries (Maas and Rosendaal 2016). Analysis of remuneration methods used The remunerations of the non-executive directors have been based on considering the aggregate approach. As per the LTI plan it has seen that the various type of the LTI of the company is seen to be estimated in the early financial year 2018. Due to this the board has not been able to estimate the planning performance based on the measures and the targets which are seen to be updated as per the business strategy and henceforth this is seen to enhance the overall alignment between the shareholders (Malak 2015). The ongoing review of the board is able to finalise state on different types of the aspects of the preferred LTI approach in the early 2018. Due to this, the board has not been able to decide on the eligible executives who will be able to resume the granting procedure of the incentives. In addition to this, the company has able to clearly state in general that there is no intention for making the retrospective grants for LTI or increase the overall quantum of the additional remuneration aspects in FY 17. Due to this, the panel is of the view that the executives have been seen to be having the sufficient remuneration quantum for FY 17 and sufficient exposure for the company equity. This is viewed with the particular relevance of different factor which is seen to be related to changing STI deferral for FY 17 (Balsam et al. 2016). The recommendation of the board remuneration is seen to be based on the various type of the factors which is having direct relevance to the aggregate approval of the shareholders. The recommendation of the board and the remuneration is seen with the conditions of the service of the CEO and MD. The approval of the remuneration has been seen with the various types of the reporting aspect of the incentive plan is based on the payment approval and approval of the payments under such plans. The establishment of the performance is further associated to the incentive plans. The executive remuneration is determined as per the committee guidelines and the suggestions given by the board the remuneration structure is seen to be comprising of both the fixed and the variable component. In addition to this, the variable component of the company is seen to include both the fixed and the variable component. The executive remuneration aspect is seen to include the various aspects for the remuneration packages which appropriately reflect the executive duties, performance and responsibilities against the pre-determined objectives (Bussin and Modau 2015). Recommendations The recommendation for the company is seen in giving more emphasis on LTI reward performance which is seen to encourage the sustained performance and responsible for driving a long-term shareholder value creation. It is further depicted that the different type of the approach of the remuneration policy has focused on the long terms shareholder value creation. This is further able to focus on the value creation aspect. The improvement in the STI plan of the company needs to be emphasize on the individual KPIs in the last 12 months performance period. The ownership culture should be able to further able to drive the various aspects of the ownership culture and drive the significant nature of the retention outcomes. It is further discerned that more than 50% of the STI award is deferred with the restricted shares. The significant nature of the improving areas has further seen to be discerned in form of the various type of the areas of the executive remuneration framework along with crea ting a link between the policy and the group. It is further discerned that the company needs to put significant effort towards the several aspects of the remuneration policy which is particularly seen to be based on the significant nature of the service level agreements. The various reforms associated to the remuneration needs to be taken into account with the non-executive director remuneration, key management personnel equity transaction which is seen with equity incentive plan holdings, transactions and the several types of the other aspects of remuneration affecting the future periods. Some of the various types of the other areas of the improvement of the company is further seen to be taken into account with the services from the remuneration consultants. This will be able to ensure that the various type of the long-term incentive schemes for the company will be implemented in an efficient manner. Conclusion As per the different depiction made on the review of topic and review of literature it is seen that the CEO will be able to make an investment to make sure the process is pre-planned and a part is based on the normal course of the business. The potential problem is seen to be based on the different type the attention which is seen to be related to the Uncertainty concerning roles and responsibilities, absence of time and energy, disagreement with the criteria for the assessment and lack of direct information on the non-quantitative performance. It is further discerned that as per the review of the company the different types of the important aspect for reporting is seen to be based on the various information based on yearly remuneration practices. The board has been further able to establish the Remuneration and the Nomination committee. The primary responsibility of the board in the matter associated to the remuneration is seen with the various types of the depiction which is seen t o established as per the review and the advice given by the board and the directors which is seen to be based on the various factors directly related to evaluation and advise the Board of Directors fees and the remuneration of the board members and including the equity incentive. It is also depicted that the significant aspect of the findings is seen to be related with the senior group managements remuneration, however this is seen with the approval of the concerned committee. The important form of the analysis of the remuneration policy is seen to be related to the measures and the targets which is seen to be updated with the business strategy and henceforth this has been able to enhance the overall alignment among the shareholders. References Balsam, S., Boone, J., Liu, H. and Yin, J. (2016) The impact of say-on-pay on executive compensation, Journal of Accounting and Public Policy, 35(2), pp. 162191. doi: 10.1016/j.jaccpubpol.2015.11.004. Bussin, M. and Modau, M. F. (2015) The relationship between Chief Executive Officer remuneration and financial performance in South Africa between 2006 and 2012, SA Journal of Human Resource Management, 13(1). doi: 10.4102/sajhrm.v13i1.668. Cheng, M., Lin, B. and Wei, M. (2015) Executive compensation in family firms: The effect of multiple family members, Journal of Corporate Finance, 32, pp. 238257. doi: 10.1016/j.jcorpfin.2014.10.014. Ferrarini, G. A. and Ungureanu, M. C. (2014) Executive Remuneration. A Comparative Overview, in Oxford Handbook of Corporate Law and Governance, Forthcoming. Available at: https://ssrn.com/abstract=2509968. Kuo, C.-S. and Yu, S.-T. (2014) Remuneration Committee, Board Independence and Top Executive Compensation, Journal of Risk and Financial Management, 7(2), pp. 2844. doi: 10.3390/jrfm7020028. Maas, K. and Rosendaal, S. (2016) Sustainability Targets in Executive Remuneration: Targets, Time Frame, Country and Sector Specification, Business Strategy and the Environment, 25(6), pp. 390401. doi: 10.1002/bse.1880. Malak, S. S. D. A. (2015) The Determinants of Disclosure of Individual Executive Directors Remuneration: A Malaysian Perspective, Procedia - Social and Behavioral Sciences, 172, pp. 666673. doi: 10.1016/j.sbspro.2015.01.417. Nyombi, C. (2014) Corporate personality: the Achilles heel of executive remuneration policy, International Journal of Law and Management, 56(3), pp. 184196. doi: 10.1108/IJLMA-05-2012-0017. Velte, P. and Eulerich, M. (2014) Determinants of executive board remuneration new insights from Germany, Corporate Ownership and Control, 11(4 A), pp. 96113. doi: 10.22495/cocv11i4p7. Wells, P. J. (2015) Executive remuneration: regulatory reforms in UK company law, International Journal of Law and Management, 57(4), pp. 300339. doi: 10.1108/IJLMA-12-2013-0054.
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